Update 3.15pm. MOSAIC BRANDS ISSUES STATEMENT: "The claims that the ACCC refer to relate to a third party sellers product advertised on two of our 11 websites. They were immediately removed when we became aware of the issue and neither product was ever purchased by a customer.
Marketplaces are a common feature across all major local and international online retail sites and we have strict monitoring in place. Even with best endeavours in monitoring when your offering 5.8 million items there can be a tiny minority of third parties sellers who do the wrong thing.
"Given it concerned two products that were never purchased, out of a total of 5.8 million online items, we’re disappointed at the outcome.”
Mosaic Brands has paid $266,400 in penalties, after the ACCC issued two infringenent notices relating to alleged false or misleading representations.
The alleged representations were made by Mosaic Brands in promoting a face mask on its Autograph Fashion brand website and a hot water bottle on its Katies brand website.
On 18 August 2021, amid on-going public concern about COVID-19, Mosaic Brands advertised a KN95 mask for sale on its Autograph Fashion website.
The mask was prominently described as “FDA AND CE APPROVED” in the product title.
It is alleged that as a result Mosaic Brands falsely represented that the KN95 Mask product was approved by the Food and Drug Administration (USA) and Conformitè Europëenne (EU).
On 26 August 2021, Mosaic Brands also promoted a McGloin’s-branded hot water bottle for sale on its Katies brand website, alleging that the water bottles had been “ACCC Approved."
The ACCC does not endorse or approve any products, ACCC Commissioner Liz Carver said.
“We were very concerned about the type of representations being made by Mosaic Brands.
“Making false representations about the approval or endorsement of a product by any government authority misleads consumers and is likely to erode public trust in government authorities and certification marks.
“These penalties are a warning to all businesses that making false or misleading representations about government approval for their products can lead to ACCC enforcement action, with serious consequences including penalties,” Ms Carver said.
No consumer orders were made via Mosaic Brands’ websites for either of these products.
This ACCC enforcement action follows previous penalties paid by Mosaic Brands after it admitted making false or misleading claims about hand sanitiser and face mask products on its brand websites during the COVID-19 pandemic.
In May 2021, Mosaic Brands paid penalties totalling $630,000 after the ACCC issued five infringement notices in respect of those admitted false representations.
At that time, Mosaic Brands also entered into a three-year court-enforceable undertaking which included committing to a refund scheme and implementation of a consumer law compliance program.